7,1,2,1. Exclusions

The following will not be considered as income from work in kind:

1. Shares of the company itself

   The delivery to active workers, free of charge or at a price below the normal market price, of shares or interests in the company itself or in other companies in the group of companies, in the part that does not exceed, for the total of those delivered to each worker, 12,000 euros per year, under the conditions established by regulation.

2. Updating, training, or recycling

   Amounts set aside for refreshing, training or recycling of employees when required for the performance of their activities or the characteristics of their positions.

3. Company canteens or social commissaries

   Deliveries to employees of products at reduced prices that take place in company canteens or dining rooms or social stores. Indirect forms of service provision whose value does not exceed 11 euros per day will be considered as delivery of products at reduced prices carried out in company canteens.

4. Social and cultural services

   The use of assets intended for social and cultural services of the employed staff. This consideration will be given to, among others, spaces and premises, duly approved by the competent public administration, intended by companies or employers to provide the first cycle of early childhood education service to the children of their employees, as well as the contracting of this service, directly or indirectly, with duly authorized third parties.

5. Workplace accident or civil liability insurance

   Premiums or contributions paid by the company under an occupational accident insurance contract or employee civil liability insurance contract.

6. Health insurance

   Premiums or fees paid to insurance companies for health coverage when the following requirements and limits are met:

   a) That the sickness coverage extends to the worker himself, and may also extend to his spouse and descendants.

   b) That the premiums or contributions paid do not exceed 500 euros per year for each of the persons indicated, or 1,500 for each of them who are persons with disabilities. Any amount above this will be deemed as earned income in kind.

7. Teaching services

   The provision of preschool, infant, primary, and compulsory secondary education services,

   high school and vocational training by authorized educational centers, to the children of its employees, free of charge or at a price lower than the normal market price.

8. Public service for collective transport of passengers

   The amounts paid to the entities responsible for providing the public collective passenger transport service for the purpose of facilitating the travel of employees between their place of residence and the workplace, with a limit of 1,500 euros per year for each worker. Indirect payment formulas that meet the conditions established by regulation will also be considered as such.

9. Loans prior to 1-1-92 (DA 2 LAW)

   Loans with an interest rate lower than the legal rate of money taken out before 1 January 1992 and the principal of which had also been made available to the borrower before that date.

Delivery of shares or interests to workers (art. 41 Rgl.)

The delivery of shares or participations to active workers in the following cases will not be considered as income from work in kind and will be declared exempt from taxation:

The delivery of shares or interests in a company to its employees.

Likewise, in the case of groups of companies in which the circumstances provided for in article 42 of the Commercial Code occur, the delivery of shares or interests in a company of the group to the workers, taxpayers of this Tax, of the companies that form part of the same subgroup. In the case of shares or interests in the parent company of the group, the delivery to the workers, taxpayers of this Tax, of the companies that form part of the group.

In the two previous cases, the delivery may be made either by the company to which the employee provides services, or by another company belonging to the group or by the public entity, state company or public administration that owns the shares.

The application of the provisions of the previous section will require compliance with the following requirements:

1. That the offer is made within the general remuneration policy of the company or, where applicable, of the group of companies and that it contributes to the participation of workers in the company, and that the offer is made under the same conditions for all workers of the company, group or subgroups of companies.

2. That each of the workers, together with their spouses or relatives up to the second degree, do not have a direct or indirect participation in the company in which they provide their services or in any other company in the group, greater than 5%.

3. That the titles are maintained for at least three years.

   Failure to comply with this deadline will result in the obligation to submit a supplementary declaration-settlement, with the corresponding late payment interest, within the period between the date on which the requirement is not met and the end of the regulatory declaration period corresponding to the tax period in which said failure occurs.

Updating, training, or retraining of staff (art. 44 Rgl.)

Studies arranged by institutions, companies or employers and financed directly by them for the updating, training or retraining of their staff, when required by the development of their activities or the characteristics of the jobs, will not be considered as remuneration in kind, even when their effective provision is carried out by other persons or specialized entities.

In these cases, travel, food and lodging expenses will be governed by the provisions of Article 9 of the Tax Regulations.

Company canteens (art. 45 Rgl.)

The delivery of products at reduced prices in company canteens will be considered to be the direct and indirect forms of service provision, permitted by labor legislation, in which the following requirements are met:

1. That the provision of the service takes place during business days for the employee or worker.

2. That the provision of the service does not take place during the days in which the employee or worker earns maintenance allowances exempt from taxation.

When the service is provided through indirect formulas, the following requirements must also be met:

1. The amount of indirect formulas may not exceed 11 euros per day. If the daily amount is higher, there will be compensation in kind for the excess.

2. If meal vouchers or similar documents, cards or any other electronic means of payment are given to the employee or worker to provide the service, the following will be observed:

   • They must be numbered, issued in a nominative manner and must include their nominal amount and the issuing company.

   • They will be non-transferable and the amount not consumed on one day cannot be carried over to another day.

   • No refunds on the value will be available, either from the company or a third party.

   • They may only be used in hospitality establishments.

   • The Company that delivers them must keep and maintain a record of those delivered to each of its employees or workers, stating:

     In the case of meal vouchers or similar documents, the document number, delivery date and nominal amount.

     In the case of cards or any other electronic means of payment, document number and amount delivered each day with an indication of the latter.

Indirect payment formulas for the public collective passenger transport service (Art. 46. bis RD 439/2007).

will be considered as indirect formulas for the payment of amounts to the entities in charge of providing the public service of collective passenger transport, the delivery to workers of cards or any other electronic means of payment that meet the following requirements:

1. It can only be used as payment for transport tickets to be used on public or collective means of transport.

2. The amount that can be paid with these cannot exceed 136.36 euros per month per worker, with a limit of 1,500 euros per year.

3. They must be numbered, issued in a nominative manner and must include the issuing company.

4. They will be non-transferable.

5. No refunds on the value will be available, either from the company or a third party.

6. The company that delivers the cards or the electronic means of payment must keep and maintain a record of those delivered to each of its workers, with an expression of

   1. Document number.

   2. Annual amount made available to the worker.

In the event of delivery of cards or electronic means of payment that do not meet the above requirements, there will be compensation in kind for the total amounts made available to the worker. However, in the event of non-compliance with the limits indicated in section 2 above, there will only be compensation in kind for the excess.